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Real estate growth boosted by development
Real estate in India is a thriving sector and over the last few years it has expanded beyond the boarders of metros like Mumbai, Delhi, Bangalore and Chennai. Ahmedabad is among the fastest growing real estate destinations in India. The Gujarat’s capital boasts of a thriving real estate which is nothing less than a sensational growth story riding on the multifarious development of residential apartments, integrated townships, malls and infrastructural development of roads, flyovers, etc.
Ahmedabad is on its course to become an ideal destination to invest in residential as well as commercial properties. Apartments, serviced apartments, condominiums, bungalows, integrated townships are the various types of housing units coming up to cater to the needs of the buyers. If we analyse the reasons behind the rise of Ahmedabad as a real estate destination, we can sum up in few key points.
1. Ahmedabad boasts of excellent infrastructural features and basic facilities. It has world class hospitals such as Sterling, Raksha, Panchsil, Shreeji, Sheth Hospitals, etc. Shopping malls such as Himalay, 10 Acres city mall, Pyramid, Parsvnath malls and many others are located in the city. In matters of schools, standard schools are spread over the city offering value education to students.
2. It is endowed with excellent connectivity both internally and externally. The elaborate transit system in the state will be further boosted by the proposed Delhi Mumbai Industrial Corridor (DMIC) as 62 percent of Gujarat is to be covered within the influence area of DMIC.
3. Gujarat is an economically strong state with gems and jewellery, engineering, chemicals and petrochemicals, oil and natural gas, textiles and apparels and food processing being the main industries and all these creating huge employment opportunities in the state. Along with white collar immigrant population, growing IT industry is also boosting the real estate in the city.
4. The progressive policies of the state government have helped in creating a ripe atmosphere for investment in the state. The city bursts with retail boom and with the entrance of new players, housing growth is rising in the city as well.
Residential realty trends in Ahmedabad
Real estate market in Ahmedabad was once regarded as an investor driven market. Real estate in Ahmedabad offers good deals for both the investors and end-users buying houses. As on July-September, 2012 many localities like Maninagar, Motera, Gota Road, Bopal, etc have witnessed quarter to quarter (Q to Q) rise in real estate prices. While average price remains around Rs 3500 to Rs 4000 per sq ft in most of the plush localities, there has been a rise in the rental values as well. While areas like Anand Nagar and Gota Road have witnessed rental appreciation of 5 percent to 10 percent, there are localities like Gurukul which has witnessed a Q to Q growth of over 30 percent.
The capital values of residential properties have increased in Ahmedabad by 9 percent to 13 percent in the past one year, which makes it a dream destination for property investors. Vejalpur, Vatva, Narol, Bopal, Vastrapur and Bodakdev are the prime areas to capitalise for the investors. For end-users, it serves many choices in different price ranges – in case of multi storey apartments, prices start from Rs 22 lakhs and goes up to Rs 3 Crores.
Recent times have seen increasing number of buyers opting for one bedroom and two bedroom apartments in the city, as property price escalation keeps affording a big apartment out of reach for many buyers. Generally, a two-bedroom apartment comes in the size range of 950 square feet to 1,350 square feet while a one-bedroom apartment comes in the size range of 630 square feet to 850 square feet. Hence, the demand is highest in the price segment of Rs 30 lakh to Rs 60 lakh.
The residential market in Ahmedabad is all set to rise further as 790 acres of land acquired under Urban Land (Ceiling and Regulation) Act, ULCRA which are meant for housing facilities for the urban poor, have been lying unused in the city. According to a report by Cushman & Wakefield, the city would need around 1.75 lakh new houses in coming four years. Mid range houses will dominate the residential sector as 80 percent of housing demand in the city is pegged to come from the mid range sector.